The positives and negatives of securing life insurance through work.

If your employer offers you life insurance as part of your employee benefits package, there are some things to consider before agreeing to pay for this coverage.  Here are some pros and cons to weigh when it comes to employer-offered life insurance.


The three main advantages of purchasing life insurance from your employer are convenience, price, and accessibility.  Employer-offered life insurance is relatively easy to secure, and this makes it an attractive option especially if you do not have other life insurance protections in place.  If you do not already have a personal life insurance policy, then securing coverage through work is a quick and relatively hassle-free way to get coverage.  Additionally, because your employer is absorbing some of the expense of this coverage, you may be able to also access it at a lower cost to you. Finally, when you get life insurance through your employer, you may have an easier time getting approved, even if you have existing medical conditions depending on the life y requirements offered by the employer insurance carrier.


One of the main cons of employer-offered life insurance is that you are unlikely to remain at your current job forever.  When you leave your company, there’s a good chance that you will lose the life insurance coverage you have through them.  Even if your company offers you the opportunity to convert your coverage into a personal policy, your rates will increase so significantly that you may be unable to continue paying for coverage.

Another major disadvantage of getting life insurance through your job is that you often have more limited coverage options to choose from.  This is why most life insurance experts recommend treating employer-offered life insurance as a supplement to a personal life insurance policy.  This way you are not constrained by the low coverage limits and limited coverage options of your work’s life insurance plan.

These are some of the things to consider before securing life insurance through work.  Do you have further questions regarding your life coverage?  If so, then contact the experts at Randy Jones Insurance Services in Pleasanton, California.  We are ready to assist you with all your life insurance needs today.